The purpose of this assignment is to help you become familiar with examining the stockholders’ equity section of the balance sheet.
Resources: Financial Accounting: Tools for Business Decision Making, Ch. 11
Answer the following questions. You may use the spreadsheet template provided to submit the answers to the questions. If you have any questions please let me know.
- How many shares of common stock are outstanding?
- Assuming there is a stated value, what is the stated value of the common stock?
- What is the par value of the preferred stock?
- If the annual dividend on preferred stock is $36,000, what is the dividend rate on preferred stock?
- If dividends of $72,000 were in arrears on preferred stock, what would be the balance reported for retained earnings?
Use the Week 4 Excel® spreadsheet and submit with your answers.